AMI Asset Management believes that in order to generate superior long term returns a strategy needs to perform well in bull markets, but equally as important to maintain capital in bear markets. We strive to achieve this goal by utilizing a disciplined form of a GARP strategy which focuses on investing in companies with recurring revenue business models. We define recurring revenue business models as those with products that have a short life span (<2 years) and thus must be replaced frequently. We believe that a recurring revenue business model allows a company to grow at a more predictable and sustainable growth rate while reducing volatility in earnings. We also believe that companies can go through extended periods of mispricing. Our rigorous internal due diligence process allows us to uncover these quality growth companies which we believe are undervalued.
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